"Federal Regulators Intensify Focus on Banking and Commercial Real Estate Risks"

The Federal Reserve's top supervisory official, Michael Barr, stated that bank regulators have been more aggressive in identifying and addressing issues at banks, particularly focusing on interest rate risk and commercial real estate exposure. The Fed is conducting additional exams at firms facing large unrealized losses and is closely monitoring banks nearing the $100 billion threshold for stricter oversight. Barr emphasized the need for supervisors to help banks focus on areas that matter most and mentioned the possibility of imposing temporary higher capital and liquidity requirements on banks facing risk management issues.